CFPB releases annual report on college credit agreements

The Consumer Financial Protection Bureau recently released its 2012 annual report on college credit card agreements, revealing that most college credit card agreements are between issuers and affiliates of institutions of higher education.

Almost 42 percent of all college card agreements in 2011 were between an issuer and an alumni of an institution of higher education.

Additionally, in 2011, 33 percent of agreements were between an issuer and an institution of higher education, and 18 percent of all agreements were between an issuer and another organization affiliated with an institution of higher education. Fewer than seven percent of agreements were between issuers and foundations, and fewer than one percent of agreements were between an issuer and several organizations.

Between 2009 and 2011, the number of credit card issuers increased, while the number of agreements, amount of payments by issuers, total number of accounts open at year’s end and number of new college credit card applicants declined.

Though the total number of college card agreements declined from 2010 to 2011, Capital One added 22 new agreements in 2011 to double its total number of agreements in 2010.

In 2011, 224 of the agreements in effect were terminated before year’s end. FIA’s 221 terminations accounted for a majority of the total agreement terminations. The report said that since “the number of terminated agreements continues to strongly outpace the number of new agreements being created, we expect the total number of agreements in effect in 2012 to continue to decline.”